Forestry grant ends

Press, 9 November 1984, Page 2

Forestry grant ends

Wellington reporter The Forestry Encouragement Grant scheme has

been abolished in the Budget. This scheme was introduced only last year and its

abolition is part of the Government’s plan to align help to various land-based industries.

The Government wants to ensure that land use is influenced by its productive potential, and not by assistance from the Government. The scheme provided tax credit. This change in taxdeductibility for forestry is part, of the Government’s over-all review of taxes on business. Instead of the grant scheme, forestry will be eligible for tax-deductibility like those which apply to development expenditure .in farming, as a transitional measure until the Government has completed its review.-

Three transitional measures will apply: Protection - production grants of 39.4 per cent as well as tax-deductibility will be paid to growers who receive a certificate of eligibility before Budget night. Claims will be accepted until june 30, 1990. Local bodies will get the grants until March 31, 1986, if they can prove a commitment by contract or resolution to the expenditure made before Budget night, with a rate at 45 per cent. Maori authorities will continue to get the grants under the same conditions as- local', authorities, but at 31.25 per cent.